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March 22, 2025

In TurboTax, you can indicate that the retirement income is not taxable.

 

Illinois does not tax the amount of any federally taxed portion (not the gross amount) included in your Form IL-1040, Line 1, that you received from:

  • qualified employee benefit plans, including 401(K) plans; 
  • an Individual Retirement Account, (IRA) or a self-employed retirement plan; 
  • a traditional IRA that has been converted to a Roth IRA;
  • the redemption of U.S. retirement bonds; 
  • state and local government deferred compensation plans; 
  • a government retirement or government disability plan, including military plans; 
  • railroad retirement income; 
  • retirement payments to retired partners; 
  • a lump sum distribution of appreciated employer securities; and 
  • the federally taxed portion of Social Security benefits.